The Capital Market Authority represented by the Directorate General of Insurance Supervision organized a training programme on Risk Management in Insurance Companies in collaboration with Bahrain Financial and Banking Studies Institute at the Salalah Gardens Mall Hotel during the period 9-12 August .
On the importance of the programme Ahmed Saif Al Siyabi, Specialist at the Directorate General of Insurance Supervision, said the successful culture of risk management contributes to achieving sustainable, continues long term growth and many international companies are concerned with risk management during the past years and risk management is strategically more important as it enables the managers to take informed decision.
He added the Omani insurance market needs to crystalize the concept of risk management based on its importance as most insurance companies in Oman and the GCC are dealing with risk management as a matter of compliance with laws and regulations or a requirement of credit rating agencies rather than strategy for value maximization.
On the importance of applying risk management rules he said the company which apply such rules will be competitive with better management of performance, capital efficiency and active management of the interests with knowledge and understanding of risk in a rapidly changing environment.
Al Siyabi pointed out that efficient risk management in the market requires integration between the objects of the company and risk management culture at all levels and the connection between risk information and strategic planning and decision making adding that insurers must place risk management in the company structure and at high levels in the board and the management.
He urged the insurance companies operating in the Sultanate to develop the capabilities of the national cadres on risk management to cope with the modern risk management methods in addition to upgrading the internal risk management procedures using more advanced risk measurement instruments.
Al Siyabi added that risk management is a basic component of integrated defense system comprising the board of directors, the management and risk management department including the legal and audit aspects. He said the role of the regulators is to contribute to enhancing the importance of risk management and directing the companies for best methods, however, CMA may impose obligatory standards on risk management and the companies shall be ready for this stage to create professional insurance industry for protecting the rights of policyholders.
The training programme included risk management methods, risk mitigation in emerging markets including the Omani market as well as modern methods.